IMF approves $695 million in $2.4bn Sri Lanka recovery package
Sri Lanka just got a $695 million boost from the IMF to help recover from Cyclone Ditwah and fallout from the West Asian conflict.
This loan is part of a bigger, four-year package worth $2.4 billion.
The IMF says Sri Lanka's ongoing economic reforms have kept things steady, even with all these setbacks.
Sri Lanka: Ditwah killed over 600
Cyclone Ditwah hit hard in late 2025, causing more than 600 deaths and $4.1 billion in damages.
On top of that, rising oil prices and fewer tourists, thanks to the West Asian conflict, have slowed the country's growth to an expected 3% by 2026.
The government has rolled out relief measures and reconstruction efforts to try to turn things around.
IMF urges fiscal, taxes, electricity reforms
Despite some progress, debt risks are still high.
The IMF is urging Sri Lanka to keep up reforms in public finances, taxes, and electricity if it wants lasting stability and growth.